It's Getting More Interesting: Paramount Approached Warner Bros Investors with a Surprising Offer That Could Disrupt Netflix's Plans
A couple of days ago, a sensational piece of news was announced — “Harry Potter”, “Batman” and “Game of Thrones” change hands: Netflix buys Warner Bros. for $82.7 billion. The companies reached an agreement and it was only left for the regulators' verdict, but unexpectedly, a third party intervened that could disrupt Netflix's plans.
What's Known
Previously, the main contender for acquiring WB assets was Paramount Skydance - it offered conditions to the Warner Bros. Discovery management that were rejected in favor of Netflix. Now, however, Paramount is making a devious offer, but not to the bosses of the holding, but to its investors.
Paramount is ready to pay $30 per share for Warner Bros. Discovery, which significantly exceeds their market value, and the total deal amount will be about $108 billion, which is $24 billion more than Netflix's offer.
Moreover, Paramount is ready to acquire cable channels, including CNN, TBS, and TNT, in which Netflix is not interested.
To provide more weighty arguments, a Paramount representative stated that the deal between Netflix and Warner Bros. does not meet the interests of investors, apparently implying that their terms are significantly more attractive.
It is not yet clear how Paramount's offer will affect the further course of events, but Warner Bros. investors definitely have something to think about.
Source: The New York Times
